Factory Fade

By

Tim Annett

Updated Dec. 15, 2006 4:58 p.m. ET

New data showing easing inflation and modest growth in the factory sector are in pitch-perfect harmony with the Federal Reserve's forecasts. But corporations forced to trim their profit estimates seem less likely to sing the economy's praises.

Inflation was well-behaved last month. On both an overall and a core basis, the consumer-price index was unchanged, as prices dipped for everything from food to gas to power to clothing. The only notable price increase was an upward lurch in shelter costs. Some economists said that...